Hankook Tire's European Production Site
Completed 2nd Construction Phase
- New additional manufacturing unit boosts Hankook's production volume in Europe
- 230 million Euro investment for plant expansion in Racalmas creates over 700 new jobs
- Hankook will accelerate its goal to become one of the top five tire manufacturers through expanded production capacity
Seoul/Korea, 17th October 2011 - Hankook Tire, the seventh-largest and one of the fastest growing tire companies in the world, announced the successful completion of its 2nd Racalmas plant production unit. Construction works for the expansion of the company's European production site started in September 2009. As planned the factory has extended its capacity, now producing approximately 12 million tires per year and giving employment to 1,900 people.
In line with the dynamically growing demand for Hankook tires in the European market, the company invested an additional 230 million Euro to build a second production unit in Racalmas to increase the capacity of its state-of-the art European production site in Hungary - totalling investments in Hungary to 550 million Euros. The new 58,000m² unit has doubled the factories' production volume and allows for the additional daily output of up to 17 thousand tires, bringing the total production to approximately 34,000 tires per day.
Since the initial opening of the plant in 2007 over 22.5 million tires have been produced in Hankook Tire's ultra-modern European factory. The capacity has been growing steadily and dynamically: While 6 million tires were produced in 2010 this year's total production is expected to reach 9 million tires, going up to 12 million tires as of 2012.
The company's Racalmas plant currently produces tires for passenger cars, SUVs and light trucks in over 500 different specifications. Passenger car radial tires account for the majority of the total production while due to the increased recognition of Hankook's high product quality in Europe the manufacturing of UHP tires shows continuously increasing growth as well. For the first time Hankook's line-up of "Made in Europe" tires will also include the company's flagship model. The recently launched high-end tire "Ventus S1 evo²" is loaded with new and sophisticated technologies and therefore being produced with the latest and most advanced production technologies installed at Hankook's state-of-the-art Hungarian plant.
The completion of Hankook's 2nd Racalmas plant production unit demonstrates Hankook's commitment to continuously supply its high-quality OE tires to leading car makers and efficiently meet the growing global demands of UHP tires. The Racalmas plant will not only further increase the production volume and brand value of Hankook Tire, but also accelerate the company's goal to become one of the world's top-five tire manufacturers.
"We are pleased to announce we have successfully completed the second phase of expansion in Hungary as planned and are now operating one of the most modern tire production facilities worldwide. Apart from state-of-the-art technologies our success depends on every one of our employees and business partners and we would like to thank them for their commitment and contributions. As a key investor and an important market player in the European automotive industry, Hankook is committed to continue its efforts to pursue dynamic growth and further developments to meet the growing demand for high quality tires in various places around the world including Europe." said Mr. Seung Hwa Suh, Vice Chairman & CEO.
About Hankook Tire Co., Ltd
Hankook Tire (Vice Chairman & CEO: Seung Hwa Suh) is the seventh largest and one of the fastest growing tire manufacturers in the world. It produces innovative, superior quality and high performance radial tires for passenger cars, 4x4s, SUVs, light trucks, campers, trucks, buses and motor sports. It invests approximately five percent of its revenue in research and development and develops cutting-edge technologies through its five global R&D Centers, meeting regional customer demands and enhancing customer satisfaction. Selling in over 180 countries around the world, the company has approximately 16,000 employees. More than 80 percent of its revenue comes from growing overseas sales.